EUR/USD: The level to monitor is 1.0400– UOB Group

FXStreet Insights Team FXStreet

The Euro (EUR) could break the significant support at 1.0450; the next technical target at 1.0400 is likely out of reach for the time being. In the longer run, EUR weakness has resumed; the levels to monitor are 1.0450 and 1.0400, UOB Group’s FX strategists Quek Ser Leang and Lee Sue Ann note.

EUR weakness has resumed

24-HOUR VIEW: “Our view for EUR to trade in a range yesterday was incorrect, as it plummeted to a low of 1.0461, closing on a weak note at 1.0473 (- 0.66%). The strong momentum is likely to outweigh the oversold conditions. Today, EUR could break the significant support at 1.0450. The next technical target at 1.0400 is likely out of reach for the time being. On the upside, any recovery is expected to remain below 1.0530, with minor resistance at 1.0505.”

1-3 WEEKS VIEW: “Two days ago (20 Nov, spot at 1.0590), we indicated that ‘the weakness in EUR has stabilised.’ We expected EUR to ‘consolidate between 1.0520 and 1.0685.’ After EUR dropped to a low of 1.0507, we pointed out yesterday (20 Nov, spot at 1.0545) that ‘the recent downtrend is likely to resume if it breaks and stays below 1.0490.’ We did not anticipate EUR to break below 1.0490 as quickly, as it plummeted to 1.0461. To look at it another way, the recent EUR weakness has resumed earlier than expected. The levels to monitor are 1.0450 and 1.0400. We will maintain our view provided that 1.0560 (‘strong resistance’ level was at 1.0600 yesterday) is not breached.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.